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Breakingviews: Goldman cuts to appease

Thursday, October 17, 2013 - 03:01

Oct. 17 - Richard Beales and Antony Currie explain how the firm is keeping investors onside after a bad trading quarter by slashing pay.

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So Goldman Sachs -- today still -- of that lately tables -- company active league tables but otherwise a pretty weak that -- that. Yemen is a very well being top investment banking the tables that they can bring in the revenue. Don't pay the bills like. I'm fixed income trading is -- thing we're looking at what -- fake it exists fixed income currencies and commodities. And that is down but -- -- both last quarter and the same period last year which is -- ruled anyone else but everybody's had a it's not great quota for that but I sat together -- thank Jake -- was down. 8% B of a city down in the team's spokesman said. -- -- This -- brings up -- one of the big issues of physical which is what they want it fixed income business is -- duplicate. So Michael Monday in just about every single business but they also a unlike -- -- it was a concentrate on the big ticket someone's despite businesses which means that when there's not as much. Business going on one last quote -- guys have a lot of reasons to not do much business. They can insufferable. Right was if you -- -- say UBS Credit Suisse which pulled out certain businesses. They're gonna have mobile way and the businesses they are in ongoing -- With the likes of JPMorgan and Citi B of A half of the things that they can bring in what they can run inside the mind -- transaction. Management and all the all the kind of thing lowering the noticeable boring you know you're less -- -- So what -- we -- that for the post of Goldman is. The balance between what you anchors get paid that was settled let's get paid yet and this incident some recognition in this quarter at least that the bank should said the pain oh yes -- be sped it exactly yeah actually that the bank has cut compensation but but by quite a -- -- normally what Goldman and others especially -- does this. So the first record deal -- away as much as possible and only goal of the that it just this vehicle because celebrities would just in the final court. This time they cut them way back they got to drop compensation set aside by but -- percentage points compared to last year. To study fox which is actually -- that -- 5% of revenue but revenue is also down about Clinton's brightest on trips and it -- at the site and the last thing they truly want to do in the fourth quarter is so Kuwait some votes to -- and exactly -- expect the bank has been making. That they could -- less staff say they've they've taken it down I think the first month the its that a 41% which is minutes behind. But it also allows -- to just sneak above that 10% to -- Line fools Hamas which is just about about the cost of capital property which is just what you -- this quarter. Even with this mean that what they could become this course actually meant that they hate them they put -- didn't put an extra 500 million into the pot. To fail lack of money when the city may bottom Hoffman in it stifles it. And forums and still behind its own equity for the quarter was eight -- it's good for the testaments here at least that it closed. PM and Goldman's Henry suffered schools. There will leave it out go Lou we'll have lord of the banks as they report that we'll have more breaking news for you tour.

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Breakingviews: Goldman cuts to appease

Thursday, October 17, 2013 - 03:01